Modern Mining September 2015

COUNTRY FOCUS – NAMIBIA

and dilution and contin- ues to fine tune the new on-site assay lab. This improvement is expected to continue as the mine gets below the complex upper oxide portion of the orebody and reaches primary ore. The DFS on Otjikoto – which was based on the Otjikoto deposit alone and its probable mineral reserves of 29,4 million tonnes at a grade of 1,42 g/t – estimated a mine life of 12,5 years with an aver- age annual production of 112 000 ounces. While the mine life is still estimated at 12,5 years, annual pro- duction is likely to be much higher but the exact

3,0 m at 45,84 g/t gold and 26 m at 3,74 g/t gold including 7,0 m at 11,15 g/t gold (true width unknown), indicate the exploration potential of the main Otjikoto high grade shoots below the existing pit. These shoots could possibly be mined by underground methods in conjunc- tion with the Wolfshag resource reported above a cut-off grade of 3,0 g/t gold. Otjikoto, of course, has been a major boost for employment in the Otjiwarongo-Otavi area. As of the end of July this year, B2Gold Namibia had 685 employees, of whom 462 were on a permanent employment contract. Some 97 % were classed as historically disadvantaged, 17 % were female and less than 1 % were non-Namibian. Thus far, according to B2Gold Namibia, labour relations have been positive. On 27 July this year, B2Gold Namibia and the Mineworkers’ Union of Namibia (MUN) signed a Recognition and Procedural Agreement after the trade union met the required provision of the 50 % + 1 member representation. “I am delighted that the MUN and the com- pany have solidified these structures that will pave the way towards an honest and mutually beneficial dialogue,” Mark Dawe said recently, commenting on the agreement. “Realising the importance of the Recognition and Procedural Agreement, both parties went to great lengths to ensure that it is a fair and comprehensive doc- ument that will govern and guide this crucial relationship for the life of Namibia’s newest mine – the Otjikoto gold mine.” Photos courtesy of B2Gold Namibia

figures will only be known once an updated mine plan is completed by the end of this year. B2Gold, however, has already said that annual gold production will be approximately 200 000 ounces per annum in 2016 and 2017. The increased production (which is catered for by the mill expansion) reflects the growing potential of the Wolfshag zone, located directly adjacent to the east and north-east of Otjikoto, which was discovered in late 2011. In January this year B2Gold announced a significantly higher grade updated gold mineral resource estimate for Wolfshag. The updated inferred mineral resource contains 675 000 ounces of gold within 2,58 Mt grading 8,14 g/t utilising a 3 g/t cut-off. This inferred resource is below a pit shell containing an additional 1,03 Mt at 2,81 g/t gold (93 000 ounces gold) in the indi- cated category. The previously released initial inferred resource estimate for the Wolfshag zone was 6,8 Mt at 3,2 g/t gold containing 703 000 ounces of gold. B2Gold Namibia currently plans to com- mence open-pit mining at Wolfshag in 2016. The conceptual plan would be to blend higher grade material fromWolfshag with ore from the Otjikoto pit resulting in an increase in annual gold production at Otjikoto and improved proj- ect economics. The updated mine plan will further evalu- ate open-pit and underground mining at Wolfshag. The Wolfshag zone remains open down plunge to the south-west. In addition, historic Otjikoto deposit holes such as OT98, with 16,0 m at 5,07 g/t gold, and OT126, with

Otjikoto poured its first gold in December last year. Members of the project team are seen here with the first gold bar.

The updated mine plan will further evaluate open-pit and underground

mining at Wolfshag.

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September 2015  MODERN MINING  35